Porsche gains 18pc share of Kenya luxury car market in two months
Data released by the Kenya Motor Industry Association shows Porsche sold 27 units of its Cayenne model. FILE PHOTO | NATION
What you need to know:
The entry of Porsche with a single showroom in Nairobi’s Sameer Business Park has for the first time given fans of the brand an official local dealer.
Luxury car dealer Porsche has gained an 18 per cent share in the high-end market within two months of opening its Nairobi operations, pointing to pent-up demand for its brand from middle-income and wealthy motor enthusiasts.
Latest data released by the Kenya Motor Industry Association (KMI) shows that Porsche sold 27 units of its Cayenne models, priced between Sh10 million and Sh30 million, in May and June. This catapulted the firm to the position of third-largest luxury car dealer in the first half of the year, beating Bavaria Auto which sells the BMW brand.
“We sold the units to individuals and private companies,” an official at Porsche’s Nairobi office told the Business Daily. The company, owned by logistics firm Multiple Group, was appointed the local Porsche dealer late last year and started taking orders in the second quarter of this year.
The entry of Porsche with a single showroom in Nairobi’s Sameer Business Park has for the first time given fans of the brand an official local dealer.
Buyers of Porsche models previously imported them from Europe and other foreign markets. Total sales of luxury vehicles rose 53 per cent to 153 units in the six months ended June, compared to 100 units a year earlier. Porsche’s performance has seen it overtake Bavaria Auto, a subsidiary of Simba Corporation, whose sales dropped by 10 units from 22.
This resulted in Bavaria’s market share falling to eight per cent from 22 per cent, ranking it fourth in the luxury car dealers segment. The BMW models, including the X3, X5, and X6 sell at between Sh8 million and Sh18 million.
The new Jaguar Land Rover (JLR) dealer, RMA Kenya, was ranked second with a 28 per cent market share in the first half.
The company started selling the Land Rover and Jaguar models in the second half of last year after taking over the franchise from CMC Holdings. RMA sold 42 units of the brands in the first six months of the year. Sales of the brands in the corresponding period last year were done under CMC, which sold 25 units.
The loss of JLR has diluted CMC’s presence in the luxury vehicle segment, with the dealer clearing the stocks remaining in its showrooms.
In the first half of the year, CMC sold four units of the brands, comprising three Land Rover Discovery and a Range Range Evoque which are priced at about Sh11 million each.
Drop in market share
The few units earned CMC a 2.6 per cent market share in the first half, down from 25 per cent a year earlier. Market leader DT Dobie recorded a drop in market share, joining the list of dealers who have ceded ground to Porsche.
DT Dobie’s market share dropped to 44 per cent in the period from 53 per cent the year before, despite recording higher sales. The dealer of Jeep Grand Cherokee and Mercedes brands sold 68 units in the period, representing a 15 per cent increase from 53 units a year earlier.
The rivals have launched new models, competing on pricing and brand reputation to grow sales among Kenya’s super-rich. DT Dobie recently launched a new version of the Mercedes S Class which sells from Sh16 million and is popular among corporate executives.
RMA Kenya also introduced Jaguar F-Type models priced at Sh18 million. Bavaria is set to ship in the BMW X4 model which is expected to sell from Sh13 million.
